Your mid-year checkup: Get savvy about lowering your taxes
Are you still owing the IRS in taxes every year?
Not a great situation to be in, is it? But there is still hope
for this year. You have almost six months, in some cases a
little longer, to make certain you owe less tax, and possibly no
tax, next year.
Here's a blueprint that outlines the keys to lowering your taxes
and remaining audit proof. Follow these keys and you're
guaranteed to lower your taxes by hundreds, if not thousands, of
dollars!
Key #1: Consider a Home Office Deduction
Many taxpayers have avoided the home office deduction because it
has been regarded as a red flag for an audit. If you
legitimately qualify for the deduction, however, there should be
no problem. You are entitled to write off expenses - such as
rent, utilities, insurance, and housekeeping - associated with
the portion of your home where you exclusively conduct business.
A middle-class taxpayer who uses a home office and pays $1,200 a
month for a two-bedroom apartment could easily save $1,200 in
taxes a year. People in higher tax brackets with greater
expenses can save even more
Key #2: Organize your Records
Good organization may not cut your taxes. But there are other
rewards, and some of them are financial. For many, the biggest
hassle at tax time is getting all of the documentation together.
How do you get started?